The barriers to entry to precision agriculture

According to a report by McKinsey & Company, if our world continues to develop as it is, our demand for crops will at least double by 2050. As a result, there is increasing pressure on food producers and the shift towards crop farming techniques. Accuracy is becoming vital due to changing circumstances.

The United States was one of the first countries to start using such techniques in 1998. Since then, soil and crop monitoring, variable rate input applications, and tractor guidance systems have become increasingly widespread. There is evidence that these tools were adopted in 45 percent to 55 percent of the land in 2010-2013.

According to a report by McKinsey & Company, if our world continues to develop as it is, our demand for crops will at least double by 2050. As a result, there is increasing pressure on food producers and the shift towards crop farming techniques. Accuracy is becoming vital due to changing circumstances.

The United States was one of the first countries to start using such techniques in 1998. Since then, soil and crop monitoring, variable rate input applications, and tractor guidance systems have become increasingly widespread. There is evidence that these tools were adopted in 45 percent to 55 percent of the land in 2010-2013.

Traditional approach

Without a doubt, agriculture is one of the oldest and most significant human crafts. It can also be one of the most conservative, especially outside the US Too many farmers, industry representatives, and agribusiness owners around the world cling to their decades-old practices. They are not yet ideologically ready to make the leap to modern agricultural technology.

It seems reasonable to continue doing what your ancestors have been doing successfully.

However, times are changing fast. As already mentioned, the demand for crops will have a drastic increase, while the amount of soil and clean water available will decrease. Scientists predict that it will be a challenge to meet the food needs of humanity in the future. The implementation of precision agriculture allows us to produce more crops that are also better by using fewer resources. This is why it is necessary to let go of outdated workflows in order to reap great benefits from modern technologies and tools.

Land limitations

There is a massive problem with access to land in the US. Farmland inflation rates increased by almost 150 percent between 2004 and 2018. At the same time, student debt continued to grow, so that potential farmers could not afford to enter the industry or those who were already in it could not obtain a loan and make substantial progress. Some industry experts say the limitations of land and the difficulties of obtaining it are the main reason why young people struggle to enter the agricultural industry. Furthermore, when one does not own the land, the chances that the farmer is ready to invest and improve the state of the farm are much less.

High prices

The installation of farms for a more technological approach, the purchase of special equipment and the implementation of various precision agriculture techniques are undoubtedly expensive. However, as has already been said, these changes are necessary.

When it comes to agricultural technology, there are several recommendations to consider. First of all, consult an expert before making any decision and purchase. Second, think of spending on agricultural technology as a long-term investment that can potentially bring in much more money than you have to spend to implement it. Finally, be prepared to facilitate all the necessary changes that will follow with the precision agriculture approach, including learning how to work with a lot of additional data, educating employees, etc.

There is a growing movement around agricultural technology, especially in the United States. Mini farms are popping up in several states, including Missouri, Tennessee, and Iowa. On top of that, there are more and more investors who are eager to finance farms of various sizes that implement precision farming techniques and tools.

Lack of education and qualification

According to this report, more than 40 percent of all people in the world work in the agri-food sector. This includes two-thirds of the entire population in poor countries. And the problem is that your fund often has many limitations of its own.

Although information on all countries and workers in agriculture is not yet available, there is data on some of the largest producers. For example, 9 percent of rural landowners in Brazil did not complete primary school and 27 percent of them are illiterate. Additionally, 53 percent have completed primary school but did not continue their education. Obviously, these circumstances have a major negative effect on the way they manage their farms, the type of decisions they make and whether or not they are able to implement new technologies.

By comparison, the situation in the United States is quite different. About 30 percent of American farmers went to college, and about half of them graduated with a degree. However, due to the prices of education and expenses that a farm would require, many have to choose between pursuing an education or farming. Still, some farmers also manage to attend postgraduate programs.

Age is another shocking factor. In 2013, 31 percent of farm managers in the EU were found to be over the age of 65. Meanwhile, only 6 percent were 30 years younger than that. In the US, the figures are similar. An average American farmer is 58 years old. And more than 33 percent of all US farmers are age 65 or older.

Telecommunications infrastructure issues.

Internet connection availability is an important factor when implementing agricultural technology tools and techniques. The United States has no problem with this. According to this survey, 94 percent of American farmers say they have high-speed Internet access. However, there are major problems in Europe even today. It turns out that internet access can be problematic in some parts of the UK. In 2017, only 59 percent of households in rural areas had super-fast broadband Internet. As a result, farmers in more localized areas struggle with the implementation of new technologies and tools. This is a global problem that needs to be addressed around the world.

The focus on the future

If something works today, it does not mean that it will be as efficient tomorrow. This relates to approaches to agriculture as well. Experts from all over the world emphasize that agricultural technology is the future. According to this report, precision agriculture will be the biggest trend in agriculture by 2030.

Agricultural technology tools and techniques show excellent results both in the United States and around the world. For example, as this study found, the precision farming approach used on hundreds of acres of land leads to significant increases in profits.

Meanwhile, financial and strategic investors are aware of how financially promising the future could be if demand for crops grows as much as some predict.

That is why they are very eager to invest in agricultural technology and companies that implement precision agriculture.

For example, The Investment Corporation of Dubai invested $203 million in agricultural technology, while Japan-based SoftBank had allocated $200 million. Furthermore, there is already evidence that, on average, food and agribusiness companies have provided higher returns than many other lucrative industries.

Overall, an agricultural technology can allow you to capitalize on available data, make more informed decisions, get better results, and make more money while using fewer resources.